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December 18, 2024

Ethereum (ETH) Price: Tests $4,000 as ETF Products See Record-Breaking Inflows Oliver Dale | usagoldmines.com

TLDR

  • Ethereum spot ETFs have seen 16 consecutive days of positive inflows, totaling $2.32 billion since November 22
  • Total net assets held by Ethereum ETFs have reached $14.28 billion, representing 2.93% of ETH’s circulating supply
  • Grayscale’s Ethereum Trust leads with $5.87 billion in assets, followed by Blackrock’s iShares at $4.02 billion
  • Current trading price around $3,947, with resistance at $4,000 level
  • Net outflows from exchanges suggest reduced selling pressure and potential bullish momentum

Ethereum spot exchange-traded funds continue to attract substantial investor interest, marking an unbroken 16-day streak of positive inflows since November 22. Data from SoSoValue shows these ETFs have accumulated $2.32 billion in net inflows during this period.

The week ending December 13 brought in $854.85 million in new investments, while the previous week saw inflows of $836.69 million. This steady flow of capital has pushed the total net assets held by Ethereum ETFs to $14.28 billion.

Grayscale’s Ethereum Trust has emerged as the market leader, managing $5.87 billion in assets. Blackrock’s iShares Ethereum Trust follows with $4.02 billion under management. Together, these ETFs now hold approximately 2.93% of Ethereum’s total circulating supply.

The price of Ethereum has responded to this institutional interest, trading near the $4,000 mark. This level has proven to be a key resistance point, with four major attempts to break through it in recent history.

Technical analyst Rekt Capital points out that Ethereum has maintained support above $3,100 following a recent breakout. The cryptocurrency has now held above the $4,000 zone as support for two consecutive weeks, potentially setting the stage for further price movement.

Market watchers note that Ethereum’s path to new highs faces several technical hurdles. The previous all-time high of $4,878 serves as a reminder that breaking through key resistance levels requires sustained buying pressure.

Some traders are taking a measured approach to current market conditions. Analyst CryptoBullet suggests the possibility of a brief dip to $3,700 before any continued upward movement, highlighting the importance of key support levels.

The flow of Ethereum on exchanges provides additional insight into market sentiment. Net outflows from exchanges typically indicate investors moving their holdings to long-term storage, which can reduce selling pressure in the market.

Recent data shows a pattern of withdrawals from exchanges, suggesting holders may be preparing for longer-term positions. This behavior often precedes periods of price appreciation, as fewer tokens are readily available for trading.

However, market participants are watching several factors that could impact price action. Justin Sun, founder of Tron, recently unstaked $208 million worth of ETH from Lido Finance, introducing potential selling pressure to the market.

Ethereum Price on CoinGecko
Ethereum Price on CoinGecko

The sustained inflow into ETF products marks a shift in how institutional investors approach cryptocurrency exposure. These regulated investment vehicles provide a familiar framework for traditional finance participants to gain exposure to Ethereum.

Breaking down the weekly flows shows consistency in investor appetite. The two-week period from December 1 to December 13 brought in over $1.6 billion in new investments, demonstrating steady institutional demand.

Trade volume across ETF products has remained robust, indicating active participation from both retail and institutional investors. This increased liquidity helps support price discovery and market stability.

Market data reveals that ETF holders are predominantly taking long-term positions rather than engaging in short-term trading. This buy-and-hold behavior aligns with institutional investment strategies typically seen in traditional markets.

The relationship between ETF inflows and market prices continues to evolve as the products mature. Daily trading patterns show correlation between periods of high inflow and positive price movement.

The post Ethereum (ETH) Price: Tests $4,000 as ETF Products See Record-Breaking Inflows appeared first on Blockonomi.

 

This articles is written by : Nermeen Nabil Khear Abdelmalak

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